A invested some money in 10% stock at 96. If B wants to invest in an equality good 12% stock, he must purchase a stock worth of___________?
Correct answer: C. Rs.115.20
- A. Rs.50
- B. Rs.105
- C. Rs.115.20
- D. Rs.125.40
Explanation
The 10% stock at Rs. 96 yields 10/96 per rupee invested. For an equally good 12% stock priced at x, set 12/x = 10/96, giving x = (12 x Rs. 96) ÷ 10 = Rs. 115.20. The likely trap is option d, Rs. 125.40, which fails to preserve the same income yield.
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